Question

Steel and aluminum are substitutes. If the price of steel increases, other things remaining the same, we would expect the price of aluminum to __________ and the equilibrium quantity of aluminum to__________

For the 1st question, the options are increase, decrease, remain unchanged
For the 2nd question, the options are increase, decrease, remain unchanged

Answer 1

increase

increase

Step-by-step explanation:

Substitute goods are goods that can be used in place of another good.

If price of steel increases, demand for aluminium increases. this shifts its demand curve to the right. Equilibrium quantity and price increases as a aresult